Scientists at the Australian National University (ANU) say new strains of rice and wheat adapted to the pressures of climate change could be ready in five to 10 years.

Professor Murray Badger from the School of Biological Sciences says researchers have isolated genes in algae that could be inserted into grain plants to help them lose less water and be more productive in an environment with higher levels of carbon dioxide.

Professor Badger says algae has a mechanism to improve its photosynthesis.

"The research could lead to improved photosynthesis of plants such as wheat and rice under conditions such as current day carbon dioxide and particularly under water limited conditions and elevated temperature, when these plants are challenged," he said.

"So if you can take simple genes such as algae and put it into a plant like wheat, you could change the balance between how much CO2 is fixed and how much water is lost ... to match how a maize plant operates."

Professor Badger says there is a lot of interest in the research from rice dependent countries.

He says rice is starting to be a scarce commodity and prices are rising.

"The International Rice Research Institute in the Philippines is particularly interested in using the same mechanisms of a maize plant and put those in the rice plant," he said.

"But that takes a lot of genes and is very complicated.

"If you could do what algae do, it only takes a few genes and you could potentially achieve those outcomes, with a very simple transfer of genetic information."

Professor Badger's team is the only group in the world undertaking such research.

Based on a report by rural reporter Sarina Locke, first aired on 666 ABC Canberra.